Nigeria’s external reserves gained N674.48m in two weeks as the Central Bank of Nigeria (CBN) intends to enforce remittances in foreign currency only.
Figures obtained by Biz Watch Nigeria from the Central Bank of Nigeria (CBN) on Monday showed that the reserves rose from N35.83bn as of January 7, 2021, to N36.51bn as of January 21, 2021.
The apex bank on Friday reiterated its directive to international money transfer operators (IMTOs) and unlicensed companies to stop the payment of diaspora remittances into the country in naira.
The apex bank in a statement signed by the Director of Trade & Exchange, O.S. Nnaji, noted that all diaspora remittances must be received by beneficiaries in foreign currency only (cash and/or transfers to domiciliary accounts of recipients).
“Only licensed IMTOs are permitted to carry on the business of facilitating diaspora remittances into the country,” the statement read.
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“IMTOs are not permitted, under any circumstances, to disburse diaspora remittances in naira (either in cash or by electronic transfers) be it through naira remittance settlement accounts (which had been earlier directed to be closed), third party accounts, or via any other payment platform within and/or around the Nigerian financial system.”
The apex bank noted that the measures were intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria.
It warned that strict sanctions, including withdrawal of operating licenses, shall be imposed on individuals and/or institutions found to be aiding, abetting, or directly contravening the guidelines.
While unlicensed operators would also have their accounts in Nigerian banks closed, including being barred from accessing banking services in Nigeria.
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